Online Traders Accused Of Tax Evasion

Online Traders Accused Of Tax Evasion

Spending watchdog the Public Accounts Committee has singled out traders on the internet as contributing to the £2bn lost each year in undeclared taxes.
A new report highlighted individuals who trade on the internet, self-employed people and buy-to-let landlords as key areas of risk, creating a 'hidden economy' worth over £2bn and involving more than two million people in the UK.



Public Accounts Committee chairman Edward Leigh maintained that HM Revenue & Customs (HMRC) has had little success in stamping out a "cash-in-hand" culture in the UK.

HMRC has been making more use of data matching techniques and a tax evasion hotline to expose people in the hidden economy, the report said. If found, they could be liable to a penalty of up to 100 per cent of the amount of tax owed.